Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Jun. 30, 2019

APPLIED INDUSTRIAL TECHNOLOGIES, INC. & SUBSIDIARIES

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

YEARS ENDED JUNE 30, 2019, 2018, AND 2017

(in thousands)



COLUMN A	COLUMN B		COLUMN C						COLUMN D			COLUMN E
DESCRIPTION	Balance at Beginning of Period		Additions Charged to Cost and Expenses		Additions (Deductions) Charged to Other Accounts				Deductions from Reserve			Balance at End of Period
Year Ended June 30, 2019
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts	$	10,964	$	4,058	$	—			$	4,524	(C)	$	10,498
Returns reserve	2,602		738		3,925			(A)	—			7,265
	$	13,566	$	4,796	$	3,925			$	4,524		$	17,763
Year Ended June 30, 2018
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts	$	8,056	$	2,803	$	3,548		(B)	$	3,443	(C)	$	10,964
Returns reserve	1,572		—		1,030			(B)	—			2,602
	$	9,628	$	2,803	$	4,578			$	3,443		$	13,566
Year Ended June 30, 2017
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts	$	9,329	$	2,071	$	—			$	3,344	(C)	$	8,056
Returns reserve	1,705		—		(133		)	(B)	—			1,572
	$	11,034	$	2,071	$	(133	)		$	3,344		$	9,628


(A)	The Company adopted ASC 606 - Revenue from Contracts with Customers effective July 1, 2018 which requires the Company's sales returns reserve to be established at the gross sales value with an asset established for the value of the expected product to be returned.


(B)	Amounts in the year ending June 30, 2018 represent reserves recorded through purchase accounting for acquisitions made during the year of $3,548 and for the return of merchandise by customers of $1,030. Amounts in the fiscal year ending June 30, 2017 represent reserves for the return of merchandise by customers.


(C)	Amounts represent uncollectible accounts charged off.